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Biggest Investors Say Beware the Bond Market as Fed Raises Rates
Bond returns will probably be ho-hum next year -- just as they have been in 2015 -- according to the biggest investors. JPMorgan Chase & Co., Fidelity Investments, Pacific Investment Management Co. and Goldman Sachs Group Inc. are all cautioning not to be too optimistic. Goldman Sachs predicts benchmark U.S. 10-year yields will climb to 3 percent by the end of 2016 from 2.29 percent Thursday.An investor would lose 3.2 percent if Goldman Sachs’s yield forecast proves to be accurate, data compiled by Bloomberg show. Goldman Sachs and JPMorgan are both primary dealers, the 22 firms that trade directly with the Fed and ... (full story)